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Hello Friends,
Special Session short but not sweet!
The
Special Session called by Governor Kate Brown for Monday, May 21, was NOT an
effort to help small business as portrayed by the Governor. It was, in fact, an opportunity to give a tax
break to the wealthiest sole proprietors while omitting the struggling or new sole
proprietors. Passing HB 4301 only gives
a tax break to sole proprietors who make over $250,000 and leaves out those
making under $250,000. This is too
little and too late following passage of SB 1528 in the February 2018 Short
Session which imposed new taxes on small business to the tune of $256 million
in income taxes and a new 1 ½ % health insurance tax. Keep in mind the Governor could have vetoed
SB 1528 and supported all small business in the state. One could question her motivation in calling
this Special Session
What is sad to me is that we could have used this as an
opportunity to support roughly 300,000 small businesses by repealing the $1.3
billion tax increase passed in SB 1528 or at a minimum given this special tax
break to all sole proprietors, not just the 12,000 sole proprietors it is aimed
at. It is a little-known fact that the
median income for an unincorporated sole proprietor is only $23,131 and $45,522
for an incorporated small business.
While the average compensation for an Oregon teacher is $87,308 and
$90,408 for a state employee. Once again
politics wins over good tax policy.
For these reasons, I voted against this bill.
Click to edit this placeholder text.In the 2018 Short Legislative Session a very controversial Tax bill, SB 1528, which disconnects Oregon from the Federal Tax Code was passed on a party line vote by a Majority of Democrats. The revenue that will be generated by this action is on the backs of Oregon’s small businesses who were already paying a higher rate than the Big C-Corps. This bill was unnecessary, poorly crafted at best and creates an unlevel playing field for the smallest of Oregon's Businesses.
1. The changes in the federal tax overhaul would have created a state tax cut of around a quarter-billion dollar for small businesses;
2. Passage of SB 1528 stops that from happening;
3. Taxes on small businesses now will be raised by nearly $244 million in 2018 and $1.3 billion over the next 6 years;
4. Big C-Corporations are exempt from this disconnect;
5. Large national corporations are the biggest winners – they keep the Federal tax cut and keep their much lower state tax rate.
My "no" votes on both of these bills keeps in line with my ongoing voting record in that a bill should be good for all Oregonians and not playing favorites by picking winners and losers with only benefiting a few and not the many. You can rest assured I will continue my efforts in the State Senate to fight for a level playing field for all Oregonians in the next upcoming Legislative Sessions. What's good for the goose is good for the gander.
Thank you for taking the time to read my newsletter.
Yours truly,
Senator Alan Olsen
Senate District 20
Email: Sen.AlanOlsen@oregonlegislature.gov
Capitol Phone: 503-986-1720
District Phone: 503-266-4599
Capitol Address: 900 Court St NE, S-425, Salem, OR 97301
District Address: 675 Northwest 2nd St., Canby, OR 97013
Website: http://www.oregonlegislature.gov/olsen
Senator Olsen's Committees:
Vice Chair of Senate Committee Environment & Natural Resources
Senate Committee on Veterans & Emergency Preparedness
Joint Carbon Reduction Committee
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